Commodity price index rises again

The RBA has released its commodity price index for October, which rose 1.2% in SDR (currency weighted) terms – the key determinant of the terms-of-trade – but fell by 0.3% over the year:

Preliminary estimates for October indicate that the index increased by 1.2 per cent (on a monthly average basis) in SDR terms, after increasing by 2.1 per cent in September (revised). The rural, non-rural and base metals sub-indices all increased in the month. In Australian dollar terms, the index increased by 2.8 per cent in October.

Over the past year, the index has decreased by 0.3 per cent in SDR terms, led by lower LNG coal and oil prices. The index has decreased by 2 per cent in Australian dollar terms.

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